BRAND POSITIONING AND

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BRAND EXTENSION.
z BRAND POSITIONING

Brand positioning has been defined by Kotler as “the act of designing

the company’s offering and image to occupy a distinctive place in the
mind of the target market”.
In other words, brand positioning describes how a brand is different
from its competitors and where, or how, it sits in customers’ minds. A
brand positioning strategy, therefore, involves creating brand
associations in customers’ minds to make them perceive the brand in a
specific way.
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Why is brand positioning important?

By shaping consumer preferences, brand positioning strategies are

directly linked to consumer loyalty, consumer-based brand equity,
and the willingness to purchase the brand. Effective brand
positioning can be referred as the extent to which a brand is
perceived as favorable, different and credible in consumers’ minds.
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How to find a powerful brand positioning
(3 simple steps)?

Step 1: In order to create a unique and successful positioning for your

brand, you need to analyze the following: Understand what your
consumers want Understand what your company’s and brand
capabilities are Understand how each competitor is positioning their
brand
Step 2: Once you’ve done that, you will need to choose a positioning
statement that: Will resonate with your consumers Can be delivered by
your company (capabilities) That is different from your competitors.
Step 3: The remaining challenge is to then reflect this brand positioning
in everything that you do (brand personality, packaging design, product,
service, visual identity design, communications, etc).
z BRAND EXTENSION

Brand ExtensionBrand extension or brand

stretching is a marketing strategy in which a firm
marketing a product with a well-developed image
uses the same brand name in a different product
category. The new product is called a spin-off.
Organizations use this strategy to increase and
leverage brand equity.
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TYPES OF BRAND EXTENSION

Line Extension.
Customer Franchise Extension
Company Expertise Extension
Brand Distinction
Transfer of Component
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ADVANTAGES AND DISADVANTAGES.

Grows Audience
More Earnings
Trust from Customers
Promotes the Existing Products
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DISADVANTAGES

Potential Change of Parent Brand Image

Possibility of Over saturation
Smaller Marketing Budgets.
z Examples:
ITC & TATA